HomeMy WebLinkAboutItem 7.1 Tri-Valley Housing Oppor
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DATE:
TO:
FROM:
SUBJECT
STAFF REPORT
CITY COUNCIL
December 18, 2012
Honorable Mayor and City Councilmembers
Joni Pattillo City Manager""'
CITY CLERK
File #430 -10
Proposed Financial Assistance to the Tri- Valley Housing Opportunity Center
Prepared by Amy Cunningham, Assistant to the City Manager
EXECUTIVE SUMMARY:
The Tri - Valley Housing Opportunity Center ( TVHOC) is requesting $525,000 in financial
assistance from the Cities of Dublin, Livermore and Pleasanton to meet its current and future
operating expenses. The financial assistance includes a $155,000 loan to meet outstanding
debt obligations, a $100,000 pledge as an incentive to promote the sale of a portion of its real
estate holdings, and a $270,000 three -year grant to meet its current and projected future
operating expenses. At this time, Staff is recommending that City Council approve a $51,667
expenditure representing Dublin's share of the $155,000 loan and that Staff be authorized to
enter into negotiations with the Cities of Livermore and Pleasanton and the TVHOC regarding
the full request for financial assistance. The final loan terms, and any future financial
assistance, will be developed cooperatively between the Cities and TVHOC. The Staff
recommendation includes authorization to execute the loan documents in a form approved by
the City Attorney. The Cities of Danville and San Ramon, which had been involved with the
TVHOC previously, have declined to participate with this program.
FINANCIAL IMPACT:
The funding for this proposed expenditure would come from the Inclusionary Zoning In Lieu Fee
Fund. Adequate funds exist in the Fiscal Year 2012 -2013 Housing Programs budget to
accommodate the proposed loan amount of $51,667.
RECOMMENDATION:
Staff recommends that the City Council: (1) Approve a $51,667 appropriation from the
Inclusionary Zoning In Lieu Fee Fund representing Dublin's share of the $155,000 loan to the
TVHOC to meet existing debt; (2) Authorize the City Manager to enter into a loan agreement
with the Tri - Valley Housing Opportunity Center and the Cities of Livermore and Pleasanton as
approved to form by the City Attorney; and (3) Authorize the City Manager to negotiate with the
Cities of Livermore and Pleasanton and Tri - Valley Housing Opportunity Center regarding terms
required for the recommended and additional financial assistance, including increased City
oversight of TVHOC activities.
Page 1 of 5 ITEM NO. 7.1
Submitted By
Assistant to the City Manager
DESCRIPTION:
Reviewed By
Assistant City Manager
The Tri- Valley Housing Opportunity Center ( TVHOC) is a 501(c)(3) non - profit cooperative
housing resource center formed in 2005 through the active participation of the five Tri - Valley
communities (Danville, Dublin, Livermore, Pleasanton, and San Ramon) and interested
business /resident concerns. Since its inception, the TVHOC has coordinated homebuyer
programs including homebuyer education counseling, down payment assistance programs,
lease purchase programs, and inclusionary housing programs through its main office in
Livermore and community outreach forums in the Tri - Valley cities. The TVHOC has an annual
operating budget of approximately $290,000 with 2.1 Full -Time Equivalent (FTE) employees,
including an Executive Director and an eight member Board of Directors. Its offices are located
at 141 North Livermore Avenue in downtown Livermore.
By consolidating the affordable housing service needs of the five jurisdictions into the TVHOC,
each jurisdiction has realized administrative cost savings and more efficient services are being
provided to each community. People looking for affordable housing in the Tri - Valley are able to
go to a single location for housing - related information that encompasses the entire region. With
the creation of this regional public /private clearinghouse, local jurisdictions are able to leverage
their scarce housing resources enabling them to meet a larger percentage of the public's
housing needs. Working regionally, the TVHOC provides a one -stop shop reaching over
260,000 people in the Tri - Valley area and assures that the full value of current programs
available through private lenders, state and federal programs are realized.
By working with local lending institutions, title companies, real estate associations and their
affiliate organizations, the TVHOC provides information regarding private sector lender
resources, funding sources, and homebuyer training, helping to match those in need with the
programs and services that benefit them most.
The TVHOC has recently expanded its services to include foreclosure and mortgage
restructuring assistance, and the demand for these services has increased dramatically over the
last several years. Funds provided by the jurisdictions would support the Center's efforts in
reaching out to Tri - Valley residents in need of this service. The TVHOC has also provided free
tax preparation services for low- income households for the past several years under the federal
Volunteer Income Tax Assistance (VITA) program, facilitating the return of thousands of dollars
to these households that have been used to establish down payment savings programs. A copy
of the TVHOC 2011 Annual Report is included as Attachment 2.
In 2011, the five jurisdictions provided a combined loan of $125,000 to assist TVHOC with
meeting its ongoing operating expenses. Loan repayment was based on the TVHOC providing
direct services to each of the cities. For Dublin, TVHOC has provided direct assistance by
qualifying potential buyers for City homeownership housing programs. This service is of
significant benefit to the City in that all potential, buyers are determined to be qualified to meet
City financial and program requirements. In addition, Dublin has provided the TVHOC with
funding as part of the City's annual Community Grant Program.
Page 2 of 5
While Danville and San Ramon have been involved with the program since its inception, they
have recently decided against any further financial support based on user data which shows the
largest group of users being in Dublin, Livermore and Pleasanton. However, as part of this
process, Staff intends to develop a mechanism for obtaining financial support from these
jurisdictions as a reimbursement for TVHOC provided services to residents in the two respective
communities.
DISCUSSION
Over the past two years, TVHOC has been affected by the overall financial environment which
has impacted its revenue raising efforts and its ability to sell a portion of its real estate holdings
located in downtown Livermore. In addition to its office building noted above, the TVHOC also
owns an occupied /rented affordable living unit located on the second story of its office building
and an adjacent vacant commercial building located at 147 -149 North Livermore Avenue. At the
time of property acquisition, it was expected that the commercial site would be sold and that
proceeds would be used to help meet the cost of needed capital improvements to the office
building. However, the commercial property has not sold due to the challenges facing the
commercial real estate market. This situation is creating financial pressure for the TVHOC which
has outstanding debt requiring immediate payment. In view of this situation, TVHOC
approached the cities requesting the following:
A $155,000 loan to meet current / immediate financial obligations, including payment of a
seller's note, contractor fees for necessary building improvements that were previously
completed, accrued property taxes and fees for preparation of financial audits.
A $100,000 pledge to assist with sale of its commercial property at 147 -149 North Livermore
Avenue in downtown Livermore. The sale of this property is critical to TVHOC financial
health because it's unlikely that it will have the ongoing revenue to meet debt service. The
pledge would cover the cost of some real estate fees and property write -down to bring the
property more in line with the existing commercial market.
A $270,000 grant to be paid over three years to meet ongoing operating expenses.
Total Amount of TVHOC Request - $525,000
Detail of TVHOC's request for financial assistance is set forth in the September 28, 2012 letter
from Milly Seibel, TVHOC Executive Director (Attachment 1).
Due to the complexity of these matters, Staff from the three cities met collectively over the past
few months with the TVHOC Executive Director and Board representatives to fully analyze the
extent and purpose of the financial assistance. Based on discussions between the City
Managers, there has been agreement that the $155,000 loan is necessary to meet current debt
obligations. However, the City Managers have not yet agreed upon the most appropriate
mechanism for meeting TVHOC's request for a pledge and other financial assistance. To date,
the following have been discussed:
Utilize an unsecured promissory note / loan to meet the immediate $155,000 loan request
with the expectation that repayment could occur in the future subject to TVHOC cash flow
and / or require direct services in lieu of cash repayment. If the City Council approves the
report's recommendation, Staff anticipates preparing such a loan agreement and executing it
in a form approved by the City Attorney.
Page 3 of 5
Regarding the $100,000 pledge, an additional unsecured loan agreement has also been
discussed with an understanding that the Cities would share in any proceeds of TVHOC's
office /housing unit located at 141 North Livermore Avenue when the property is eventually
sold. A loan of this type could also include terms for potential cash payments subject to
TVHOC cash flow. Should it be determined that a loan of this type is necessary for the
TVHOC, Staff would report back to the City Council with a recommendation regarding loan
terms and approval.
Another option concerning the commercial property involves one or all of the Cities
purchasing the property from the TVHOC with the expectation that it would be held until such
time as the market improves when it could be sold at no or minimal financial loss. This option
could also include purchasing the office /rental property with the expectation that TVHOC
could relocate to more affordable or donated space. Should this be determined to be the
most advantageous option, Staff would report back to the City Council with a
recommendation prior to agreeing to participate.
Provide an annual grant in a manner consistent with the City's ongoing Community Grant
Program guidelines. This assistance would be discussed as part of the City's annual
operating budget, the annual grant program, or other timeline as agreed between the parties.
Regardless of the contractual vehicles utilized, the City benefits from having the TVHOC
continue to provide services to the Tri- Valley that meet demand in a cost effective manner and
may realize a short or long term financial loss relative to repayment of the loans. In the event
cash flow is unavailable for loan payments, Staff would again look to direct services in lieu of the
cash payments. Services would include the following:
• Provision of homebuyer orientations and financial education workshops throughout the
TVHOC service area.
• Homebuyer counseling to prepare low and moderate income families for homeownership
using pre - purchase counseling sessions and a HUD - approved 8 -hour curriculum.
• Administration of the resale of below- market price- restricted homes developed under the
Dublin First -Time Home Buyer Program (FTHLP).
• Foreclosure counseling to assist impacted homeowners to apply to lenders to renegotiate
existing loan packages.
• Foreclosure recovery assistance to households that have experienced foreclosure through
the provision of housing resources and information, credit counseling, service referral, and
other services aimed at economic recovery.
As part of the ongoing discussion with the City Managers, it has been agreed that continued
financial support warrants greater City oversight of TVHOC activities to ensure adequate input
regarding financial and operational matters. While the Cities have not had concerns overall with
the TVHOC's Board of Directors or the direction of the organization, continued financial support
warrants this increased oversight. Currently, Staff is negotiating with the Board regarding this
matter and expects an outcome that may include amending the organization's by -laws to allow
for City representation on its Board of Directors. Staff will inform the City Council regarding the
outcome of this activity.
Staff is currently meeting to discuss these options and anticipates addressing these issues
within sixty days.
Page 4 of 5
NOTICING REQUIREMENTS /PUBLIC OUTREACH:
This report will be made available to Milly Seibel, Executive Director at TVHOC.
ATTACHMENTS: 1. TVHOC letter dated September 28, 2012
2. TVHOC 2011 Annual Report
Page 5 of 5
To: Troy Brown, City ofLivermore
Amy Cunningham, City mfDublin
Steven Qmdan, City nfPleasanton
From: K4iUySe|be!, Executive Director
Subject: Request for a Loan to assist Tri-VaUey Housing Opportunity Center
Date: September 28, 2012
The Tri-Valley Housing Opportunity Center (Center) is requesting financial support in the amount of 1) $155,000 to
cover residual financial obligations from the 2010 reorganization; 2) up to $100,000 to be held in trust to facilitate the
anticipated costs associated with the sale or refinancing of the commercial portion of the property (147'149 N
Livermore Avenue); and, 3) $30,000 per jurisdiction per year for the next three years for general operations.
Background
Having a long-standing history and commitment of working together to address housing needs of Tri-Valley reshdento
the Cities of Dublin, Livermore, Pleasanton, San Ramon, and the Town of Danville (Tri-Valley Jurisdictions) assisted with
funding and staff resources in creating the Center. |n September ZODS, the Center opened for business and became a
"one-stop-shop" to provide Tri-Valley residents with financial tools and resources necessary to secure affordable
housing and build assets within their communities. The Center is able to provide accredited course material and
services in m neutral unbiased format to assist residents achieve housing stability thus creating stable communities. The
Center became a true civic partner offering services to ease the workload of the local jurisdictions. The Center is able to
offer these services at a cost that is less than what a city/town would pay if they delivered these services in-house.
In March 2011, the Center and the Tri-Valley Jurisdictions entered into a Funding Agreement in the amount of $125,0c)O
to address a cash flow deficit and to stabilize and sustain operations of the Center. The deficit was in the wake of an
unprecedented downturn in the housing market and economic recession. As a condition of the funding the Board of
Directors agreed to perform a comprehensive management and financial restructuring.
The Center's Board of Directors undertook the monumental task of developing a Strategic Plan to assist theCenterin
making budget decisions to restructure the organization, develop and expend the board of directors, and retool the
Center's mission, vision, and value statements. In addition, the Board created 8mdneoo and Action Plans to guide the
Center over the next few years. Prior to the change in leadership, the Center was in distress. When clients called the
Center, they never got a "live" person and then there was little effort to return calls and the doors were seldom open.
Only 160 households received services such as homebuyer education, one-on-one counseling and foreclosure recovery
counseling in FY2010. With the support of the Tri4/el|eyjurisdictiunx, the Center established and staffed regular
business hours, calenclared workshops and classes on a regular schedule and provided opportunities for households to
meet with a counselor. With m consistent presence, the Center served 327 households in FY2011 through homebuyer
education, one-on-ono counseling and foreclosure recovery counseling, more than doubling the core services provided
to Tri4/aUey households. This would not have been possible without support from our city partners. (Refer 10
Attachment 1).
Page I
The Center has taken proactive steps to rebuild mecoQmhion of the Center within the community, outreach to banks,
develop partnerships, with county and state programs, and submitted funding requests tomore than 20 foundations,
financial institutions and/or corporations for $94,500 in an effort to diversify our funding. The Center emerged from its
organizational audit period with audited financial statements, oormprehenslve review and restructure of the operating
budgetand strong accounting practices and disciplines. The Center has undergone e paradigm shift onfumdraioing:The
Board has realized thait the mission of the organization is not u» competitive in fundraising against other social needs
organizations, such as the, Humane Society. The Center is shifting its financial outreach tofocus on housing-related
services as mn employee vve|Uness program targeting local businesses and corpuraiimns,. The Center is outreaching ta
human resource directors to develop fee for service plans to provide financial education and related services to their
employees,
Center Services
The Center established itself as an independent 501 (c)(3) non-profit organization to increase its po1emtiai| to serve the
community and position the organization to receive funding from public, private, and philanthropic organizations. In,
20,10, U.S, Department of Housing and Urban Development (HUD) accredited the Center asa HUD Certified Housing
Counseling Agency. Since opening its doors in, 2005, the Center has provided services to over 10,000 Tri-VmU{ey
residents. The TVHOC has tracked households seeking more intensive services since 20017 through Home Counselor
OnUme,a NOD approved database management sys enm, imc[ud�img financial education, homebmyermducatimm, mortgage
delinquency and default counseling, and one-on-one counseling services. During fiscal years 2008 through 2010, with,
the TVNO[ struggling finamcia0y, the Center was unable to fully connect with consumers needing vital services.
However, with the support of the Tri-Valleyjlurisdictions for FY2011-12, the number of households served doubled from
1G8 households imFY 2O18to327 households inFY2O11as demonstrated in the below chart,
Center Property Acquisition / Overview
The Center purchased the buil�ings on June 1, 2007 for approximately $1,000,000. A1thetiimeofpmrchase the�Cen1er
secured several loans to finance both the acquisition and rehabilitation of the 141 North Livermore Avenue office
space. Table 1 below is a chart ofloans, lenders, andternms. The Northern California Community Loan Fund (WCCLF)
and Livermore loans also include a portion of the acquisition/closing costs associated with the purchase.
TABLE I -
Property Acquisition Loans
NCCLF Mortgage
Livermore Previous, Owner's Total
Note
Principal
$662,265
$5001,000
$50,000
$1,112,265
Amount
3 years;
Loan Terms
Monthly Interest Only
Payments are resid�ual
Balloon Payment
Payments; and
of income dollars.
due June 1, 2012
Balloon Payment of
$662,265 due June 1,2012
Rate
Payment
The Center owns two buildings located at 141-149 North Livermore Avenue in downtown Livermore, The 141 North
Livermore Avenue building is o 2,280 square-fomt tvvu'mTory structure built in, 1876 composed of 1,308 sguame-foot,
first floor office space occupied as headquarters by the Center aind a second-floor, 900 square-foot apartment currently
Page
restricted osmn affordable unit. The 147-149 North Livermore Avenue building ("Conmmerda|Space")iso2,850square-
foot commercial building built in 1968, with three individual office/shop spaces ranging from, 650to9O@square feet
that are currently rented at market rate. At the time ofpurchase, both buildings were included in aaingUe parcel. The
lots have subaeqmemdy been redrawn toallow for the separation and independent sale pf the buildings, |nordertopay
off the N[[LF and Seller notes the property was listed with CoUUem International in July 2010. Unfortunately, the
downturn in the real estate commercial market has impacted the Center's plan. Since the property listing, the
commercial real estate market has been extremely slow torecover. The property has been om the market for two years
with no tangible offers. Un July 2012, the Board listed the property with Fracl»cm Realty, a neu|tV group that specializes
in commercial properties in Livermore. With the changle in representation, the rea|tor provided a broker's opinion that
the property, with its existing zoning, hao a market value of up to $650,000. Although a recent appraisal listed the
property value at $725,0001, there has been Vd1]e interest in the property. Challenges that x*e have identified that
impact the sale cf the property are, 1\ the property is tucked away and i�s considered a"destinatinn" location suited for
a business that doesn't need maim street exposure; and 2) the property's cinder block construction is not very
,attractive, To stimulate interest in our property, the Center believes that reducing the price would incentivize an
investor to purchase the property.
The Center received m six month loam extension from NCCLFto allow the Center time to aggressively nmairket/se|Kthe
building. The original seller, K80. DeBorba'Smith, has advised that she cannot extend the seller's note which matured
in June 2012. �Mrs. De8orbo has indicated a willingness to extend the note to September 4,2O12. With accrued
interest this nctetotal�s $64,000. The loan from the City of Livermore remains }m effect and is secured by the Center's
main building and ix not part mf the restructuring plan.
Funding Request
The Center isnaq�uestmg a loan from the ddesof Dublin, Livermore and Pleasanton in the amount mf$1S5,O8Otocover
residual financial obligations from, the 2010 reorganization; up to $100/000 to be held in trust to fac0kate the
anticipated costs associated with the sale or refinancing of the commercial portion of the property (147-149 @
Livermore Avenue); and, $3,O,O0OperjurisdintimmperVeor for the next three, years horAeneraUoperations.
The $IS5,ODO funding request would consolidate these outstanding obligations:
Seller's note payable to Mrs. DeBorbe $ 64,1008
Contractor's note payable toJK8O�^0ei|U $ 45�,008
Accrued Property Taxes payable 10 Alameda County $ 35,000
20I1 Financial Audit payable toKodason&Lume*
$1S5,OUO
~Audit for JCuzFinancials Prior m engaging oo auditor tn review the ZC1zfinnndols, the Center applied for and was granted funds tm
cover the costs by the Tri-Valley Community Foundation (TVCF), The TVCF is not able tofulfill our grontaward.
The $2QOOO10 funding request for funds to be held in trust would be applied to the 4le/refinance of the building:
Realtor commission $ 34"000
Closing Costs $ 3,000
Gap tminoen1hvizeaa|e**
$10O,O@O
~~Gspmmconmvae the sale This gap funding will cover the difference in the expected sale price and the amount of the NCCLF mortgage
(approximately $63,000). The Center expects that this will motivate e buyer m purchase the property. Aa the commercial real estate market
is still recovering, it is unsure if the property will sell by the end qf the year which is why the loan request has both o refinance and sale
component listed,
Page 3
While the Center has addressed most of the critical issues from last year, weare challenged every month financially
due primarily to continued heavy debt service The Board is cognizant of the Executive Director's accrued salary as a
liability to the organization and has taken steps to cure the outstanding balance. 4¢ the June 2O12 board meeting, the
Board agreed to present an agreement for deferred compensation with u payment structure /t|meLine to cure the
accrued salary and decrease its debt.
in spite of the progress made to date a realistic analysis shows that reaching organizational susta|nabi|ity is %aWm8
longer than expected. Although the organization could possibly sunhvewi houttbecbies help, the requested financial
support would allow the Center to take care of all of the outstanding issues and secure a strong financial footing for the
future, The proposal ix structured to be comprehensive and to address all anticipated needs for the future 10 make the
organization self-sufficient. If the financial support is in the form of a loan, the new loan debt will be covered by current
rent revenue from the residential unit ($1164/month) and monthly realized savings. The anticipated savings are
shown io Table 2.
Table 2 - Description of Anticipated Savings
Annual
Monthly
Selling Building
Pay off first mortgage (includes forbearance loan)
$ 65,252
$5,438
Property Taxes
$ 10,000
$ 833
Insurance on commercial parcel
$ 2,000
$ 167
Contractor Pay off
$ 20,025
$1,669
Maintenance Costs commercial parcel
$ 4,000
$ 330
Anticipated Annual Savings: $101,277 $8,437
In summary, the Center's debt restructure would allow the organization to have a modest operating reserve for the
first time. The Center sees this as its final request to the cities to deal with emergency funding to support the
reorganization of the Center. As noted above, this proposal is different than the request submitted last year and the
[enter would work out the terms collectively with the participating cities. If this funding request is approved, the
Center will be in a better position to refinance and subsequently pay off the N[ILF note, and reduce the amount of
interest being charged by existing loans, which will result in savings of approximately $76,QOO in the first year, and
$65,000 annually thereafter. Thank you for your consideration of this request
attachment
Page
ATTACHMENT I
TVHOC Households Served
by Fiscal Year
350
300
250
E
200
M fy2011
0
N fy2010
fy2009
0
150
0
5",
w fy2008
IN fy2007
-01
i0o
'2'
50
0
Danville
Dublin
Livermore Pleasanton SanRamon
All
Other
Cities
--------------------------------------------------------------------------------------------------------------------------------------
Jurisdidions
LEGEND:
TVHOC Households Served by Fiscal Year
FY2007
FY2008
FY2009
FY2010
FY2011
FY-Totals
Danville
3
4
2
5
15
29
Dublin
33
20
12
26
39
130
Livermore
53
63
55
49
87
307
Pleasanton
30
30
24
25
67
176
San Ramon
11
14
11
13
21
70
All Other Cities
46
39
33
42
9�8
258
Total HCO Clients
176
170
137
160
327
LI! ,
4
� i
14
1
�
v
Tri Valley,
HousinM O g
pportu�ni
Annual Report 2011
LETTER FROM the CENTER
Dear Friends;
Tri -Valley
Un-129M
ppor nity
This years' annual report comes at a significant moment for the Tri - Valley Housing Opportunity Center
(Center). You — our supporters and colleagues — know all too well how the current economic climate has
affected our collective mission to foster financial well -being and promote housing opportunities. And yet
you continue to be resilient, advocating and assisting the Center in its vision to unlock opportunities for
a stronger community. Your work inspires us to find new and innovative ways to support your efforts
during these challenging times.
In 2011, the Center Board of Directors undertook the monumental task of developing a Strategic Plan to
set the Center on a course that meets the challenges of the future. The Plan enabled the Board to
restructure the organization, develop and expand the board of directors, and memorialize the vision,
mission, and values of the Center. In addition, the Board created Business and Action Plans to guide the
Center over the next several years providing the direction to create marketing materials to showcase the
vision and direction of our organization. As we reflect on 2011, several points stand out:
Mission: Providing education and services that build financial well -being and promote housing
opportunities remains our north star. We have stayed true to this mission by serving over 400
households with comprehensive Homebuyer Education, Financial Literacy Education, and Mortgage
Default and Delinquency Programs. Our strong commitment to our mission led us to launch a new
partnership with Las Positas Community College to provide homebuyer education customized to local
housing market conditions in the Tri - Valley region.
Finances: We maintain our commitment to sustain strong financial management — running in the black,
building our equity, and fostering financial partnerships with stakeholders that support our mission. We
emerged from our financial restructuring period with audited financial statements, restructured
operating budget, and strong accounting practices and disciplines. We are a trusted steward of our
partners' funds and continue to attract new partners to invest in our mission.
Impact: Despite challenges, we continue to emphasize providing accurate, common sense, and reliable
services and programs to our clients. We collaborated with partners to expand our impact and develop
strategic partnerships with numerous nonprofit organizations, for - profit institutions, and public
agencies.
Through it all, we feel fortunate to work with passionate and dedicated people like you. There will be
more challenges in the future, but together we will continue moving forward to ensure that the Center's
values of Compassion, Competence, and Commitment are demonstrated through our interaction with
our clients, supporters and colleagues.
Sincerely,
/h&�
Milly Seibel, Executive Director
1 .
Randi DeHollander, Chair of the Board
Report 2011 TRI- VALLEY HOUSING OPPORTUNITY CENTER
I Annual
OUR CORE SERVICES
The Center is a dynamic organization that is able to respond to the growing housing needs of
the Tri- Valley. The Center does not represent a particular city, developer, financial institution,
mortgage provider or real estate professional. Instead, the Center's strength is building local
partnerships with key participants. The Center's delivery of services revolves around three core
services: Homebuyer Education, Financial Education and Mortgage Delinquency and Default
Prevention.
Homebuyer Education
The Center provides a
Department of Housing and
Urban Development (HUD) -
approved 8 -hour homebuyer
workshop which focuses on
informing and empowering
homebuyers in their
purchase decision. The class
focuses on budgeting for
homeownership, evaluating
loan products, an orientation
to the purchase transaction
process, and post purchase
guidance maintaining home
investment.
Financial Education
Workshops are focused on
educating consumers on how
to make informed choices
among the variety of
products and providers
available in the financial
services market. These
services are marketed
specifically to those who are
underbanked and
underserved. These
consumers are often
unfamiliar with personal
financial management, have
language barriers or are
vulnerable to predatory
financial practices. These
educational courses are
provided with one -on -one
counseling aimed at
correcting financial barriers
through budgeting, credit
management and savings.
Mortgage Default and
Delinquency
The Center is a Department
of Housing and Urban
Development (HUD) -
approved housing counseling
center offering assistance to
clients by connecting them
with available resources
needed to modify their loans
or negotiate payment plans
with their lenders in order to
stabilize their housing. The
Center also provides one -on-
one assistance for clients
who were unable to modify
their mortgages to find
housing and community
services needed to secure
sustainable housing.
TRI- VALLEY HOUSING OPPORTUNITY CENTER I Annual Report
Highlights from 2011
In 2011, the Center provided comprehensive services' to 499 households including one -on -one
pre - purchase counseling, mortgage default and delinquency, income tax preparation, and
homebuyer and financial education courses. Center staff handled over 850 unduplicated
inquiries for service from consumers seeking either Center services or referrals to housing -
related experts such as real estate and bankruptcy attorneys, and short sale specialists to list a
few. This report focuses on the Center's core services offered to assist consumers in their
pursuit of a sustainable housing environment.
Homebuyer Education
In 2011, the Center held six homebuyer education
workshops throughout the Tri- Valley region.
Through our partnership with the cities of Dublin,
Livermore, Pleasanton, San Ramon and the Town
of Danville, who provided venues to hold the
workshops, the Center was able to present classes
at accessible locations. In the fall of 2011, the
Center entered into a partnership with Las Positas
College to offer homebuyer education courses on
campus. The course utilizes materials specifically
designed for the California housing market.
Classes will commence in spring 2012.
In total, 92 households attended homebuyer education workshops (148 persons) this year. The
8 -hour HUD approved course covered budgeting, understanding credit and how it affects a
homebuyer's ability to purchase, how to select a lender and realtor, the escrow process, and
how to maintain the home after purchase. Below is a table indicating where our participating
households reside and related outcomes.
2011 Homebuyer Services
and Related Results
City /Town
Attended Homebuyer
Class
Attended
One -on -One Counseling
purchased Housing
Danville
0
1
1
Dublin
13
5
4
Livermore
22
5
3
Pleasanton
14
2
1
San Ramon
13
0
0
Other cities (24)
30
0
3
' Comprehensive services are services that a household receives that last from one to eight hours.
Report 2011 TRI- VALLEY HOUSING OPPORTUNITY CENTER
I Annual
Mortgage Default and Delinquency
In 2011, the Center continued to see a rise in service requests from homeowners experiencing
some degree of mortgage default. The Center is listed on HUD's website and has experienced
an inflow of clients requesting services from the surrounding region, including Tracy and
Mountain House. Both communities were hard hit by the economic downturn. The Center
meets with homeowners in distress to assist them in preparing the myriad of documents
required by their financial institution. Additionally, Center staff assists homeowners in
interacting with their financial institution's loan servicer in discussing the process and options
available to the homeowner. The Center's goal is to provide the distressed homeowner with
objective neutral information to aide them in exploring options to resolve their mortgage
delinquency. In 2011, twenty -five households (24 %) received loan modifications, while fifty -
seven households (55 %) opted to resolve their delinquency through other financial avenues
(i.e., selling the home, filing bankruptcy, brought mortgage current); and three homeowners
experienced a foreclosure. Twenty -four households who contacted the Center in 2011 are still
working with staff to resolve their housing concerns.
The Center also partnered with the
cities of Dublin, Livermore,
Pleasanton, San Ramon and the
Town of Danville, a nonprofit legal
aid center (Housing Economic Rights
Advocates), subject matter experts
and other housing counseling
agencies (Richmond CHDC and ECHO
Housing) to present two Foreclosure
Recovery workshops in 2011; the
first in June and the second in
November.
The first workshop provided homeowners with a panel comprised of subject matter experts
(enrolled tax agent, bankruptcy attorney, realtor, and legal aid) to inform homeowners of the
resources available to avoid foreclosure. Over thirty households attended this event
demonstrating the community's desire and need for information. The second workshop
provided information on how to avoid loan modification scams as well as the foreclosure
process and what homeowners could expect when working with their lender. Thirteen
households attended this event. The two events illustrated that homeowners in our community
are seeking information and are interested in learning about their options to avoid foreclosure.
TRI- VALLEY HOUSING OPPORTUNITY CENTER I Annual Report
2011 Mortgage Delinquency Counseling and Outcomes
City /Town
Sought
One -on -One
Counseling
Outcome
Mortgage Issue Resolved
Danville
8
7
Dublin
11
9
Livermore
33
24
Pleasanton
15
14
San Ramon
5
4
Other Cities (24)
34
24
Financial Education
For every basic need — food, shelter, medical
care, education, and retirement — financial
planning has become not just a convenience
but an essential survival tool. As noted by
Katy Jacob in "Learning the Ropes,"
responsibility for financial well -being is
increasingly being placed on the shoulders
of individuals. Financial illiteracy compounds
these problems. Without an appreciation of
money concepts and an understanding of
financial options, people are likely to pay
more than they have to for financial
L%UILA ihkt %,V
Financial Education Class at National Budget Planners Office
services, fall into debt, damage their credit records, over - invest in life insurance, or declare
bankruptcy. Poor financial choices harm individuals and communities. Families are vulnerable
to sudden economic shocks such as health emergencies or unexpected job loss. Decreased
family stability, increased foreclosure risks, and disinvestment in homes and local businesses
challenge already disadvantaged lower income communities. The recent economic downturn
and high unemployment and foreclosure rates have complicated the problem and have
resulted in a higher percentage of low- and moderate - income individuals and families needing
financial literacy education and tools. In 2011, the Center hosted ten financial education
workshops serving 61 households. Additionally, the Center assisted 212 low- and very -low
income households prepare their 2010 income taxes returning over $325,000 back into the
community.
Report 2011 TRI- VALLEY HOUSING OPPORTUNITY CENTER
I Annual
By the Numbers for Households served in 2011
Comprehensive Services Provided to Households
in 2011
City /Town
Default
Counseling
Homebuyer
Education
One -on -One
Counseling
Tax
Preparation
Workshops
(Financial &
Foreclosures)
Other
Services
Total
Danville
8
0
1
5
3
0
17
Dublin
11
13
5
12
13
0
54
Livermore
33
22
5
92
25
3
180
Pleasanton
15
14
2
39
13
1
84
San Ramon
5
13
0
7
2
1
28
All Other Cities
34
29
1
57
11
4
136
totals
72
62
13
212
56
5
499
All (
(SE
San Ram
6%
2011 Comprehensive Services Provided (by City)
Danville
to
Pleasanton
17%
Dublin
11%
armore 36%
TRI- VALLEY HOUSING OPPORTUNITY CENTER I Annual Report
Percentage of Services Delivered to Households (by City)
Workshops
18%
Taxes
29%
DANVILLE
LIVERMORE
6%
efault
47%
Other
1% Default
Workshops _ F 16%
12% FTHB Ed
11%
Taxes
58% Counseling
2%
SAN RAMON
Other
Workshops 4%
7% - Default
18%
Taxes
25%
%Nnrkchnnc
Taxes
25%
DUBLIN
Default
PLEASANTON
9%
=THB Ed
23%
Other
Workshops
1%
l Default
15%
/ 17%
FTHB Ed
16%
1 -1
Counseling
Taxes
3%
48%
ALL OTHER CITIES
Workshops Other
8% 3%
Taxes
42%
4WW00"'-1,--FTHBEd
46% 1 -1
Counseling
1%
Default
25%
FTHB Ed
21%
Report 2011 TRI- VALLEY HOUSING OPPORTUNITY CENTER
I Annual
35
30
25
20
15
10
5
One -on -One Counseling Services*
for Tri- Valley Cities and Surrounding Region
mac\
� \�� t o� ¢O�reS�\ �ac"\ 3o c 4N 'S'\ �'S �\ � �'S", as aJ \ZA G O¢ �� o � t , - ° � �o\ agy�p\ ° � yL A d
a° �
h
�1\
*ra� �°��
a� �, ate
■ Default Counseling ■ FTHB Ed ■ Pre - Purchase Counselling ■ Other
* Does not include workshops or income tax preparation households
TRI- VALLEY HOUSING OPPORTUNITY CENTER I Annual Report
Restructuring of Organization
In September 2010, the Center's Board facilitated a leadership change as one of the first steps
of the organization's restructuring process. In 2011, the Board undertook several measures to
restructure the Center to increase capacity and enhance delivery of services. Actions taken by
the Board include:
• Expansion of the Board of Directors from seven to eleven members to broaden board expertise and
organizational support.
• Creation of Board subcommittees that have established goals, outcomes and assignments. These
subcommittees include Finance, Grants, Fundraising, and Marketing and Outreach.
• Prepared and submitted several grant applications.
• Secured financial and technical assistance from the Tri- Valley Community Foundation to develop a
fundraising campaign to fund operations that focus on key programs /services.
• Enlisted a commercial real estate broker to sell the commercial portion of the Center's property.
The Center's Board of Directors undertook the monumental task of developing a Strategic Plan
to assist the Center in making budget decisions to restructure the organization, develop and
expand the board of directors, and retool the Center's mission, vision, and value statements. In
addition, the Board created Business and Action Plans to guide the Center over the next few
years. The Center has taken proactive steps to rebuild recognition of the Center within the
community, outreach to banks, develop partnerships with county and state programs, and
submitted funding requests in an effort to diversify its funding. The Center emerged from its
financial restructuring period with audited financial statements, comprehensive review and
restructure of the operating budget, and strong accounting practices and disciplines.
Supporters and Donors
The Tri - Valley Housing Opportunity Center would like to extend a special thank you to every
foundation, organization and individual who helped make our work possible this past year.
➢ Applied Materials
➢ Bill McManus
➢ Bryce Despain
➢ California Association of
Realtors
➢ City of Dublin
➢ City of Livermore
➢ City of Pleasanton
➢ City of San Ramon
➢ Hacienda Helping Hands
➢ Hoge, Fenton, Jones & Appel
➢ Housing Economic Rights
Advocates
➢ James and Katherine Paxson
➢ John Casey
➢ Karen Carnahan
➢ Keller - Williams, Danville
➢ Lawrence Livermore HOME
Campaign
➢ Lawrence Livermore National
Security Foundation
➢ Michael Krueger
➢ Milly and Don Seibel
➢ National Budget Planners
➢ Randi DeHollander
➢ Rebecca Dennis
➢ Richmond CHDC
➢ Scott McLendon
➢ Tammy You, Golden Properties
➢ Town of Danville
➢ Tri - Valley Community
Foundation
➢ United Way Bay Area
➢ US Dept. Housing & Urban
Development
➢ VITA Volunteers
➢ Wells Fargo Bank
Report 2011 TRI- VALLEY HOUSING OPPORTUNITY CENTER
I Annual
Statement of Financial Activities
Income
Contracts
53%
Grants
27%
tions Income
1% 15%
rogram
Fees
4%
Expenses
Business
Training Expenses
1% 3% Contract
Services
19%
Payroll
42% _
Operations
5%
2011 Budget vs. Actual
lities &
pment
30%
2Center expenses were reduced to align with contributions; However, the Center had an unexpected increase in
the "Facilities & Equipment" category as the Center has booked property taxes. The Center applied for an
exemption for property taxes (based on 501(c)(3) status) and granting of this exemption will either eliminate or
reduce the ne> -ative figure.
% of
Budget
Actual
Budget
Income
Grants
$85,000
$69,750
82%
Program Fees
$7,646
$8,995
118%
Rental Income
$41,254
$38,137
92%
Contributions
$0
$2,450
0%
Contracts
$155,000
$137,000
88%
$288,900
$256,332
89%
Expense
Business Expenses
$11,950
$9,592
80%
Contract Services
$53,400
$55,500
104%
Facilities & Equipment
$54,530
$86,752
159%
Operations
$12,766
$13,307
104%
Payroll
$153,229
$120,055
78%
Training
3 025
$3,132
104%
$288,900
$288,338
100%
lities &
pment
30%
2Center expenses were reduced to align with contributions; However, the Center had an unexpected increase in
the "Facilities & Equipment" category as the Center has booked property taxes. The Center applied for an
exemption for property taxes (based on 501(c)(3) status) and granting of this exemption will either eliminate or
reduce the ne> -ative figure.
TRI- VALLEY HOUSING OPPORTUNITY CENTER I Annual Report
Board of Directors
The Center's Board of Directors shares an unwavering commitment to the local community.
Board members live and work in the Tri- Valley and represent a variety of professional
backgrounds from local government agencies, small and large businesses and non - profit
organizations. All are industry experts and are deeply invested in our community. Board
members utilize their unique skills to guide the Center and its many programs.
Chair of the Board
Randi DeHollander
Vintage Mortgage Group
Livermore, CA
%i;„o f-k ,;r
Becky Dennis
Citizens for A Caring Community
Pleasanton, CA
Tron —r-
David Muellenhoff
National Budget Planners
350 Sonic Avenue
Livermore CA
Secretary
Frances Reisner
City of Livermore
1052 South Livermore Avenue
Livermore, CA
Staff
Milly Seibel
Executive Director
Nai Hin Saelee
Housing Counselor
Karen Carnahan
Administrative Aide
Judy Castro
San Ramon Realty
3708 Manacor Ct.
San Ramon CA
Marybeth McCarthy
Alameda County Workforce Investment Board
24100 Amador Street, 6th Floor
Hayward, CA
Sonja McLendon
ValleyCare Health System
5565 W. Las Positas Blvd, Suite 225
Pleasanton, CA
John Moore
Independent Consultant
Pleasanton, CA
*0
a
Report 2011 TRI- VALLEY HOUSING OPPORTUNITY CENTER
I Annual
Our History
In September 2005, the Center opened for business and became a "one- stop- shop" for local,
state and federal housing information for Tri- Valley residents. The Center was established to
respond to the unique needs of the region including the geographic isolation from services and
resources located in other parts of Alameda and Contra Costa counties. The Center was formed
to leverage public support and engage local lenders and real estate professionals on local
housing issues.
Since 1992, the cities of the Tri - Valley (Dublin, Livermore, Pleasanton, San Ramon and the Town
of Danville) have been working regionally on meeting the housing needs of low and moderate
income households through the Tri - Valley Affordable Housing Committee, a collaboration of
municipal leaders, community organizations and local businesses. The Tri - Valley Housing
Opportunity Center was created as a result of this collaboration.
Following its mission and strategic plan, the Center has fulfilled many of its goals, including
establishment as an independent 501(c)(3) non - profit organization with a governing Board of
Directors comprised of community and industry representatives. In addition, the Center has
been designated as a HUD - approved housing counseling center. The Center continues to foster
partnerships with local businesses and organizations to better serve the Tri - Valley residents.
Our Mission
Strengthening communities by providing education and services that build
financial well -being and promote housing opportunities for individuals and
families throughout the region.
Compassion ♦ Competence ♦ Commitment
141 N Livermore Avenue
Livermore, CA 94550
www.tvhoc.org
info @tvhoc.org
Tri Valley, fL
ousing
Opportunity